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Glossary · Manufacturing and logistics

EDIElectronic data interchange

EDI (electronic data interchange) is the exchange of business documents—orders, shipping notices, invoices—between two companies’ systems in a standard format, with no manual intervention.

EDI: the details

Each document has a standardized message. In ANSI X12, the dominant standard in North America, 850 is the purchase order, 856 the advance ship notice and 810 the invoice; in Europe the most used standard is EDIFACT, where the same documents are called ORDERS, DESADV and INVOIC. Messages travel over value-added networks or direct connections such as AS2, and each industry adds its own implementation guides.

It’s a common requirement for selling to big retail and to automotive: without it, you don’t get in as a supplier. For a mid-sized company, the cost isn’t in the format but in connecting it to the ERP and handling exceptions: the order with an unknown item number, the price that doesn’t match, the ship notice that needs correcting.

EDI in a project

We integrate EDI with the existing ERP or WMS and add a queue for exceptions. When a customer or supplier doesn’t use EDI and sends PDF or Excel, an AI workflow reads those documents and converts them to the same internal format.

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Glossary

Related terms

See the whole glossary
  • GS1-128Manufacturing and logistics
  • WMSWarehouse management system
  • WebhookWeb, apps and product

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